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Publication 514 - Introductory Material


Future developments. For the latest information about developments related to Pub. 514, such as legislation enacted after it was published, go to

Alternative minimum tax. In addition to your regular income tax, you may be liable for the alternative minimum tax. A foreign tax credit may be allowed in figuring this tax. See the Instructions for Form 6251, Alternative Minimum Tax—Individuals, for a discussion of the alternative minimum tax foreign tax credit.

Change of address. If your address changes from the address shown on your last return, use Form 8822, Change of Address, to notify the IRS.

Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.


If you paid or accrued foreign taxes to a foreign country on foreign source income and are subject to U.S. tax on the same income, you may be able to take either a credit or an itemized deduction for those taxes. Taken as a deduction, foreign income taxes reduce your U.S. taxable income. Taken as a credit, foreign income taxes reduce your U.S. tax liability.

In most cases, it is to your advantage to take foreign income taxes as a tax credit. The major scope of this publication is the foreign tax credit.

The publication discusses:

  • How to choose to take the credit or the deduction,

  • Who can take the credit,

  • What foreign taxes qualify for the credit,

  • How to figure the credit, and

  • How to carry over unused foreign taxes to other tax years.

Unless you qualify for exemption from the foreign tax credit limit, you claim the credit by filing Form 1116 with your U.S. income tax return.

Comments and suggestions.    We welcome your comments about this publication and your suggestions for future editions.

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Ordering forms and publications.    Visit to download forms and publications. Otherwise, you can go to to order current and prior-year forms and instructions. Your order should arrive within 10 business days.

Tax questions.   If you have a tax question not answered by this publication, check and How To Get Tax Help at the end of this publication.

Useful Items - You may want to see:


  • 54 Tax Guide for U.S. Citizens and Resident Aliens Abroad

  • 519 U.S. Tax Guide for Aliens

  • 570 Tax Guide for Individuals With Income From U.S. Possessions

Form (and Instructions)

  • 1116 Foreign Tax Credit

See How To Get Tax Help near the end of this publication for information about getting these publications and this form.

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